Weekly Freight Recap: 31/07/25

Overview

The dry bulk market remained largely unchanged this week, with some segments showing increased activity but overall sentiment staying flat. Handysize saw support in Asia driven by limited tonnage and schedule disruptions. Supramax rates continued to decline across most regions amid weak enquiry. Panamax softened further, pressured by oversupply and subdued demand in both Atlantic and Pacific basins.

Handysize

The Handysize segment recorded a slightly more active session, though fundamentals were stable compared to previous days. In the Atlantic, the Continent and Mediterranean continued to trend flat due to a lack of fresh demand. The U.S. Gulf and South Atlantic remained under pressure, with oversupply of tonnage limiting activity and pushing rates lower.

In Asia, the market held up more firmly. A shortage of vessels in the North Pacific combined with weather-related disruptions caused scheduling delays. This prompted some charterers to secure prompt tonnage at higher levels. Fixtures included the Viyada Naree open in Lanqiao being placed on subjects for a trip to the south, and the Port Alberni open Zhoushan fixing to Southeast Asia. A 41,000 dwt vessel open in CJK also fixed a trip to the Arabian Gulf for a minimum 65-day period, including scrubber benefits to owners. Sources noted limited fresh period interest in the basin, though sentiment stayed comparatively resilient.

Supramax

The Supramax market saw no notable improvement, with most routes continuing to decline. Atlantic markets remained positional, with reports suggesting the U.S. Gulf may be reaching a floor. The South Atlantic faced limited demand, forcing owners to accept lower levels. Fixing activity in these regions remained minimal despite a few tentative inquiries from operators.

In Asia, the situation was mixed. Southeast Asia retained some demand, while northern areas saw less enquiry. Fixtures included the Honever linked to a trip to the Continent-Mediterranean, the Nami One fixed for a trip to Bangladesh with clinker, and the Darya Vidya fixed for a grains run from Australia to Japan. On the period side, the Bellina Colossus open Barranquilla was heard placed on subjects for a five-month trip with Swires. Overall, the market lacked momentum, with owners waiting for more consistent spot opportunities or forward guidance.

Panamax

Panamax rates continued to soften in both basins. In the Atlantic, there was limited fixing in the North Atlantic. The market saw growing pressure on owners as charterers hesitated, and EC South America demand remained muted. Fixtures included the Ultra Margay retro Rotterdam fixed via Newport News to Amsterdam with coal. Reports of new cargo emerged slowly, with a few deals being quietly negotiated in the background.

In the Pacific, market momentum remained weak. Cargo flows from the North Pacific and East Australia were subdued. The Nefeli C open Bahudopi failed on a 2/3 leg trip. A Kamsarmax was fixed from Visakhapatnam for a trip from South Africa to India. The One Energy was fixed for a NoPac round with minerals. On the cargo side, Canpotex fixed a TBN for potash from Vancouver to India. Despite steady interest on select routes, the overall supply-demand imbalance limited any upward traction in rates.

Regional Pulse

Atlantic Basin

• U.S. Gulf and North Atlantic showed limited fresh activity across all segments

• South Atlantic remained under pressure due to tonnage oversupply and lack of cargo

• Handysize and Supramax fixtures were few, with owners adjusting rate ideas downward

Pacific Basin

• Handysize stayed supported by limited vessel supply and weather-related delays

• Supramax activity split, with Southeast Asia more stable than northern regions

• Panamax rates dropped further amid long tonnage lists and slow demand from Indo/Australia

Handysize-Specific Notes

• The Continent and Mediterranean saw a continued flat rate environment

• The U.S. Gulf and South Atlantic extended their downward trends due to oversupply

• Asia remained more resilient, especially in the North Pacific

• Adverse weather led to delays, prompting charterers to secure prompt tonnage at firm levels

Trade & Infrastructure Developments

US Rail Merger Proposal Aims to Link East and West

Union Pacific and Norfolk Southern have announced a $72 billion plan to merge, aiming to create America’s first transcontinental freight railroad. The combined network would enable uninterrupted cargo movement from the U.S. East Coast to the West Coast. Regulatory approval is still required. Industry voices raised concerns over potential service disruptions and reduced competition, while the companies emphasized efficiency and expanded access.

US–South Korea Trade Deal Includes Shipbuilding Cooperation

South Korea secured a trade agreement with the United States just before a tariff deadline. The deal includes a $350 billion investment fund, with $150 billion allocated to shipbuilding collaboration. The agreement avoids the previously threatened 25% tariff and instead imposes a 15% rate on South Korean goods. LNG purchases and industrial cooperation are also included. The agreement specifically mentions shipyard construction, supply chain renewal, and workforce training in the U.S.

Outlook

Looking ahead, key focus areas include:

• Fixing momentum in Supramax and Handysize amid limited enquiry and flat sentiment

• Vessel tightness and weather delays in the North Pacific supporting Handysize rates

• Rate development in Panamax as long tonnage lists in the Pacific continue to meet weak NoPac and East Australia demand

• Trade developments such as U.S.–South Korea shipbuilding investment and U.S. rail consolidation potentially influencing freight dynamics over time